The Benefits and Challenges of Owning and Operating a Small Trucking Business
The trucking industry is having its finest hour now: the post-COVID-19 commotion has released the unbridled and resolute spirit of both e-commerce and brick-and-mortar businesses to resume their pandemic-affected operations. The means for resuscitating the global and heavy commercial processes, in turn, were quickly and promptly drilled into the worldwide pandemic-free parade. As you may have already guessed, the transportation industry is currently experiencing a surge, as the post-COVID-19 commotion has unleashed the determined and unrestricted spirit of both e-commerce and brick-and-mortar businesses to resume their pandemic-affected operations, making it a defining moment for the trucking industry.
And it’s not only the giants of the trucking industry that take all the best out of the growing need for transportation, but also small trucking companies that so avidly, professionally, and enthusiastically grab the opportunity to carry on the tracks. The unrestrained impulse that small businesses are pushing all the brakes to integrate into logistics professionalism often overshadows long-standing, well-respected masters of logistics.
In light of these developments, small-scale trucking businesses are now basking in the limelight as the preferred choice among customers in the transportation industry.
Now, let’s delve a little deeper into the advantages and challenges associated with being an owner-operator of a small trucking business.
Run small, pay small
Managing a small trucking business is a beneficial and convenient thing to do in today’s severely competitive logistics-oriented commercial world. If you run a small owner-operator business, you spend a small amount of money. You don’t:
- Dealing with a large workforce
- Facing an excessive burden of taxes
- Investing in numerous vehicles
- Managing the complex financial aspects that big businesses demand
You can be the boss of a trouble-free company
It is undeniable that being your own boss brings forth a multitude of advantages and perks. Managing your own business is often encompassed by overwhelming responsibility and some cons too, however, it truly is a gratifying experience to take charge of your own trucking activities and be your own boss.
Things get even more beneficial when it’s a small owner-operator business that you manage: small businesses spare you of many turbulent and time-consuming operations such as taxes management, human resources seeking, etc. Being in charge of your own business that requires few resources for its successful management is a way to go for today’s assertive entrepreneurs who want to pursue owner-operatorship.
Education Is of no Matter
Today, the education-centered approach to professional choices and objectives is fading away, and specific education no longer seems to narrow down young people’s life goals, the occupation of an owner-operator is now more accessible and realistic for those having will and skill. Even if a degree in the transportation of a similar academic major may be required for truckers who want to work for a company as employers, owner-operators can go without requiring themselves to hold academic degrees.
Every silver lining has a cloud, alas. The owner-operator’s occupation is full of advantages, opportunities, and worth; however, it does have its downsides, just like any other widespread professional activity.
Trucking companies are imposed with numerous burdening and intricate federal regulations mainly centered around hours-of-service (HOS), electronic logging devices (ELDs), driver eligibility, and minimum wage. Drivers also face state-specific regulations and restrictions. For example, California’s AB5 law redefines how businesses classify workers as independent contractors. Because of this law, it’s more difficult for carriers from California to employ independent contractors. Since the two largest US ports are based in California, the law has had a tremendous impact on many carriers.
Changes in fuel prices perplex many carriers, even those who seem prepared for this expected inconvenience. Once petroleum supply declines because of refinery issues, prices will continue to increase, which will make carriers raise their prices. It’s not only the fuel pricing system that US trucking companies are grappling with. Fuel efficiency and sustainability issues have also been growing on truck drivers – they’re struggling with the problem of improving fuel efficiency at a reasonable cost in order to make their owner-operatorship environmentally friendly.
Truck driving may sometimes be too tough to endure: long operating hours, discomforting working conditions, and other challenges of the driver’s occupation have eventually led to an increased driver shortage. One more significant factor contributing to this exponential problem is payment received, which can’t keep up with the inflation, according to many truckers.
Based on the ATA calculations, the trucking industry will have to employ about a million new drivers with the aim of replacing existing drivers, which comes as a great challenge to the trucking industry.
Being an owner-operator is a lucrative and trending occupation nowadays. This venture gets even more alluring when it comes to managing a small owner-operator business. However, being a small owner-operator in the trucking industry can sometimes be burdened by challenging conditions imposed on independent carriers. Regardless of personal preferences, significant professional interactions come with their own set of pros and cons, regrettably. But the good thing is that it’s always up to you to decide where to pursue your professional and personal longings, especially given the rich miscellany of opportunities the job market has to offer today.